Group Captives and Risk Management: Building a Brighter, Safer Future—Together

Early in my career, I entered the field of safety and loss control. That decision has shaped not only my professional life but also how I see the world. For anyone dedicated to safety, the experience is transformative. You start to view everyday life through a lens of exposures and controls—always asking: “What could go wrong, and how can it be prevented?” This awareness isn’t just a job requirement; it can become part of who you are. Whenever I read about a workplace fatality, I’m deeply impacted—knowing that, so often, loss could have been prevented with the right awareness or by simply pausing to ask, “Is this safe?”

The Power of Group Captives

My journey working with group captives has brought me even closer to our customers. I've seen first-hand the real impact a severe loss has—not just on businesses, but on owners, employees and their families. Our shared goals are simple but powerful: raise awareness, provide solutions and equip our members with the tools they need to manage risk better. The group captive model is uniquely positioned to help, offering both the support of the group and the collective experience of its members.

Group captives continue to grow, and for good reason. In my view, loss control / risk management is the heart of any successful captive. Why? Because without a strong safety and risk management foundation, neither the captive nor its members will thrive. Risk shifting and sharing are essential elements of the captive model—but shouldn’t we apply those same principles to loss prevention, too? When we pool our resources or use economies of scale to support loss control, everyone benefits.

How Group Captives Work

When a new member joins a group captive, an assessment is completed—often by underwriters and loss control representatives. They review exposures, existing controls and whether the new member's risk philosophy aligns with the group. This process is crucial: it ensures everyone is committed to the same high standards and collective responsibility. After all, when we share risk, we also share the responsibility for positive outcomes.

One major benefit of group captives is the economies of scale. By working together, members can access resources, tools and vendor partnerships that might be out of reach for individual companies. Captive-wide initiatives—like safety campaigns or the implementation of key performance indicators (KPIs)—become more effective because they’re supported by the whole group.

The foundation of a successful group captive begins with each member embracing a strong safety culture. This starts at the top—with owners and senior managers setting the tone and making a real investment in risk management. There's a direct link between this investment and the return members see from their captive participation: fewer claims, lower costs and better overall results.

The proof is in the numbers. Across the industry, captive members consistently have fewer fatalities, fewer claims and lower costs per claim compared to the wider market. Active participation and a long-term commitment to risk management lead to increased profits and a stronger, more resilient captive.

Measuring and Improving Safety Culture

Group captives use a variety of tools and strategies to measure and strengthen safety culture:

• Key Performance Indicators: Tracking incident rates, lost-time injuries and claim severity.
• Safety Audits and Assessments: Regular reviews to benchmark performance and identify areas for improvement.
• Employee Engagement Surveys: Gauging attitudes and awareness to tailor training.
• Benchmarking: Comparing member performance to peers and industry standards.
• Best Practice Sharing: Collaborative forums and meetings to learn from one another.
• Continuous Improvement: Monitoring progress on corrective actions and new safety initiatives.

The Financial Impact

Investing in loss control and risk management isn't just about compliance or ticking boxes—it delivers real financial benefits:

• Reduced claims frequency and severity lead to lower premiums and greater surplus returns.
• Improved profit sharing as fewer losses mean more funds are available for distribution.
• Lower indirect costs—such as lost productivity and reputational risk— improve the bottom line.
• Better vendor terms and regulatory standing, thanks to a proven safety record.

At its core, the group captive model is about partnership—members supporting each other, sharing best practices and striving for collective excellence. By focusing on risk identification, mitigation and improvement, we not only protect our businesses but also our people. Being part of a group captive is a long-term commitment. It requires active participation, a willingness to invest in safety and a vision for continuous improvement. But the rewards are clear: a safer workplace, lower costs and a stronger, more resilient business.